Midday Commentary: Investment-grade bond spreads unchanged; Verizon long bonds rise

By Cristal Cody

Tupelo, Miss., March 24 - Investment-grade bond spreads were unchanged in early trading on Monday, according to a market source.

The Markit CDX North American Investment Grade series 22 index closed on Friday 1 basis point tighter at a spread of 71 bps.

"Corporate bond spreads remain at pre-FOMC levels, but corporate bond prices have been taken below those levels thanks to the 10-20 bps moves higher in government bond yields following the statement release/[Federal Reserve chairman Janet] Yellen's press conference," RBC Capital Markets, LLC analysts said in a morning note.

In the secondary market on Monday, Verizon Communications Inc.'s long bonds (Baa1/BBB+/A-) traded slightly higher, according to a market source.

Verizon climbs

Verizon's 6.55% bonds due 2043 rose to 120.93 in early trading on Monday, more than 2 points higher than a week ago, a source said.

Verizon sold $15 billion of the 30-year bonds at 99.883 to yield 6.559% on Sept. 11.

The telecommunications company is based in New York City.

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